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2013 Salary Appraisal Survey Report

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The world economy is still to shake off from the 2008 crisis. Globally, growth has dipped to around 3% in 2012. Industry experts prognosticate that this trend will likely continue for some more …

The world economy is still to shake off from the 2008 crisis. Globally, growth has dipped to around 3% in 2012. Industry experts prognosticate that this trend will likely continue for some more quarters before there is the inevitable light at the end. This year, the global salary forecast across most businesses, is a modest growth of about 10% on the average.

To add further, as per the enclosed Salary Appraisal Survey by SuperCFO for 2013, a significant 26% of the respondents indicated no salary growth last year. In other words, their salary remained constant. Average salary growth was between 6-10% which 23% of the respondents felt so. A majority of 32% felt the growth was less than 5%.

Interestingly, many companies are closely evaluating compensation packages for their employees and are trying to work out the best approach to retain talent, but are adequately cautious to not go overboard in increasing costs substantially. This slowing trend will likely continue. Mature economies are still healing the scars of the 2008-2009 crises. But unlike in 2010 and 2011, emerging markets did not pick up the slack in 2012, and won’t do so in 2013. There is a lot of uncertainty across the major regions of the world. Unlike 2008, this time around India and China too have been caught in the vortex of the global meltdown apart from the slow US recovery and the continuing Eurozone conflagration.

In an effort to fathom the impact of all the socio – economic trends from the employer and employee perspective, and in some way address the same, we at SuperCFO have conducted The Salary Appraisal Survey 2013. We are pleased to inform you that the response to our latest Survey was more than satisfactory, to say the least. We received an overwhelming response from participants spread across 59 countries in the world. Respondents were divided across small, medium and large business as well. Overall the survey results spell out the economic condition of the world rather accurately and make for an interesting read.

In a radical change from the past, this year’s Salary Appraisal Survey 2013 from SuperCFO, is presented in a novel manner. For the past few months, the staff at SuperCFO has been diligently working on an innovative Business Intelligence (“SuperCFO BI”) platform, which is primarily targeted towards the small and medium business segment. Soon to be launched globally, as an online commercial offering, SuperCFO BI will be a one of a kind offering from a company that has been a leader in the CFO services space.

So we thought, what better way to give our audience a feel of what’s to come than loading the SuperCFO Salary Appraisal Survey 2013 onto the SuperCFO BI platform? As you will discover, it is very interactive, and customizable to present many facets of a particular query. This all, in an alarmingly easy, and accurate manner.

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  • 1. 2013 Salary Appraisal Survey Report Copyright SuperCFO Page 1 of 17
  • 2. 2013 Salary Appraisal Survey Report Copyright SuperCFO Contents Executive Summary .................................................................................................................................................................................................... 5 Size Wise Response ..................................................................................................................................................................................................... 6 Responses by Countries ............................................................................................................................................................................................. 6 Responses by Designation ......................................................................................................................................................................................... 7 Responses by Employment Type of Respondents ................................................................................................................................................. 7 Responses by Industry ............................................................................................................................................................................................... 8 Fairness (Perception) Test .......................................................................................................................................................................................... 9 Bargaining Strategy .................................................................................................................................................................................................... 9 Bonus Receipt Statistics - Last Year ........................................................................................................................................................................ 10 Bonus Expectation – This Year ................................................................................................................................................................................ 10 Salary Growth – Last Year ....................................................................................................................................................................................... 11 Company Annual Increment Proposal - This Year .............................................................................................................................................. 11 Your Increment Expectation For Your Team? ...................................................................................................................................................... 12 Personal Annual Increment ..................................................................................................................................................................................... 12 Frequency of Salary Negotiation ............................................................................................................................................................................ 13 Concern About Losing Top Performers ................................................................................................................................................................. 13 Factors Influencing Your Decision To Accept Lower Salary .............................................................................................................................. 14 Factors Driving Companies to Increase Salaries .................................................................................................................................................. 14 Page 2 of 17
  • 3. 2013 Salary Appraisal Survey Report Copyright SuperCFO Incentive/ Perks Expectation - In Your Next Dream Job .................................................................................................................................... 15 Ideal Fixed Variable Compensation Mix % for Senior Executives ..................................................................................................................... 15 About SuperCFO ....................................................................................................................................................................................................... 16 Page 3 of 17
  • 4. 2013 Salary Appraisal Survey Report Copyright SuperCFO SURVEY PROCESS  This Survey was conducted by the SuperCFO.  After thorough analysis, Survey Questions were drafted in such a way to ensure that respondents, who comprised of CXO’s and Corporate Professionals across the spectrum, could complete the survey in about two minutes.  The Survey Questionnaire was circulated to CEO’s, CFO’s, Controllers, Finance Heads, Auditors, HR & Finance Consultants, and few other Management Executives.  We received an overwhelming response from participants spread across 59 countries in the world. Respondents were divided across small, medium and large business as well  The Survey was conducted over a month, and thereafter results were carefully reviewed and analyzed, to present a detailed report as below. Disclaimer Information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. While reasonable steps have been undertaken to ensure that the information contained in this publication accurately summarizes the survey responses received from the participating professionals; however, SuperCFO Services Pvt. Ltd. (“SuperCFO”) has not performed any procedures to verify the accuracy of the survey responses. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation and also acknowledge that any reliance upon any such opinion, advice, statement or information shall be at your sole risk. The views and opinions expressed herein are those of the survey respondents and do not necessarily represent the views and opinions of SuperCFO. While every care has been taken in preparing the information and materials contained in this site, such information and/or materials are provided to you without warranty of any kind either express or implied. In particular, no warranty regarding non-infringement, security, accuracy, is given in conjunction with such information and/or materials Page 4 of 17
  • 5. 2013 Salary Appraisal Survey Report Copyright SuperCFO Executive Summary The world economy is still to shake off from the 2008 crisis. Globally, growth has dipped to around 3% in 2012. Industry experts prognosticate that this trend will likely continue for some more quarters before there is the inevitable light at the end. This year, the global salary forecast across most businesses, is a modest growth of about 10% on the average. To add further, as per the enclosed Salary Appraisal Survey by SuperCFO for 2013, a significant 26% of the respondents indicated no salary growth last year. In other words, their salary remained constant. Average salary growth was between 6-10% which 23% of the respondents felt so. A majority of 32% felt the growth was less than 5%. Interestingly, many companies are closely evaluating compensation packages for their employees and are trying to work out the best approach to retain talent, but are adequately cautious to not go overboard in increasing costs substantially. This slowing trend will likely continue. Mature economies are still healing the scars of the 2008-2009 crises. But unlike in 2010 and 2011, emerging markets did not pick up the slack in 2012, and won’t do so in 2013. There is a lot of uncertainty across the major regions of the world. Unlike 2008, this time around India and China too have been caught in the vortex of the global meltdown apart from the slow US recovery and the continuing Eurozone conflagration. In an effort to fathom the impact of all the socio – economic trends from the employer and employee perspective, and in some way address the same, we at SuperCFO have conducted The Salary Appraisal Survey 2013. We are pleased to inform you that the response to our latest Survey was more than satisfactory, to say the least. We received an overwhelming response from participants spread across 59 countries in the world. Respondents were divided across small, medium and large business as well. Overall the survey results spell out the economic condition of the world rather accurately and make for an interesting read. In a radical change from the past, this year’s Salary Appraisal Survey 2013 from SuperCFO, is primarily presented in a novel manner through an innovative Smart Business Intelligence platform (“SuperCFO BI”). We would recommend you to click on the link provided in this report (http://bi.supercfo.com/2013-Salary-Survey) to discover an interactive report that allows you to view responses under multiple scenarios, all in real-time. We are sure the survey results would be helpful to many decision makers. Should you have any comments/feedback, do send us an email at surveys@SuperCFO.com. Page 5 of 17
  • 6. 2013 Salary Appraisal Survey Report Copyright SuperCFO Survey Responses Size Wise Response 38.8% Of The Respondents This Year Were From The Small Enterprises And 33.1% From The Medium Enterprises. Micro Enterprises Made For 10.1% Of The Respondents. Together 82% Of The Respondents Belong To The Small And Medium Businesses. The Large And Very Large Segment Made Up For The Balance. Responses by Countries As Far As Countries Are Concerned, The Largest Numbers Of Respondents Were From The United States, Followed By India At 32.8% And 16.4% Respectively. In Terms Of The Number Of Countries, Respondents From A Healthy 59 Of Them Across The Globe Took Part In The Survey. Page 6 of 17
  • 7. 2013 Salary Appraisal Survey Report Copyright SuperCFO Responses by Designation CFOs Comprised 79% Of The Respondents. 8.4% Of Them Were CEOs. In Other Words, CXOs Comprised Of 87% Of The Participants. Responses by Employment Type of Respondents Almost 95% Of The Respondents Were Permanent Employees. Page 7 of 17
  • 8. 2013 Salary Appraisal Survey Report Copyright SuperCFO Responses by Industry Major Respondents Were From Others And Technology & Telecommunications Industry Constituting 12.8% And 11% Respectively. They Were Followed By Manufacturing And Food & Beverages Amounting To 10.1% And 8.1% Respectively. Page 8 of 17
  • 9. 2013 Salary Appraisal Survey Report Copyright SuperCFO Fairness (Perception) Test Around 47% Of The Respondents Felt That Their Salary Packages Were In Line With The Market Trends. 32% Were Not In Agreement, And A Sizeable 20% Declined To Answer The Question. In Other Words, Majority Of The Participants Are Satisfied With Their Compensation Packages. Bargaining Strategy There Is A Majority Of Working Professionals, Around 60% Of Them, Who Feel It Is Necessary To Switch Jobs In Order To Attain A Greater Bargaining Prowess At The Salary Stakes. About 32 % Of The Participants Do Not Agree With This Statement. Page 9 of 17
  • 10. 2013 Salary Appraisal Survey Report Copyright SuperCFO Bonus Receipt Statistics - Last Year A Majority Of 65% Respondents Received A Bonus Payment Last Year, As Opposed To 34%, Who Did Not Receive Any. Bonus Expectation – This Year The Optimism Of Last Year, With Regards To Bonuses, Continues Into This Year, With 64% Of The Participants Hopeful Of Receiving A Bonus As Opposed To 28% Who Are Not Hopeful Of Getting Any Bonus Payment This Year. Page 10 of 17
  • 11. 2013 Salary Appraisal Survey Report Copyright SuperCFO Salary Growth – Last Year A Significant 26% Of The Respondents Indicated No Salary Growth Last Year. In Other Words, Their Salary Remained Constant. As Can Be Seen From The Illustration, Average Salary Growth Was Between 6-10%, Which 23% Of The Respondents Felt So. A Majority Of 32% Felt The Growth Was Less Than 5%. Is This A General Gloom Pervading In The World Economy, Or The Reality? Company Annual Increment Proposal - This Year A Whopping 50% Of The Participants Felt That Salary Growth Will Be Less Than 5% This Year, With 24% Saying That Their Salaries Will Remain Stagnant. A Negligible Number Of People Expect Growth Of 15% And 20%. Again, The Median Here Is Between 6-10 Page 11 of 17
  • 12. 2013 Salary Appraisal Survey Report Copyright SuperCFO Your Increment Expectation For Your Team? Managerial Salary Expectations For Their Team Falls In Line With The Overall Trend Of Growth In Salaries With The Median Again Being 6-10% With 26% Of The Respondents Agreeing For That Range. Over 43% Of The People Expect Less Than 5% Salary Growth. Only 1.5% Of Managers Expect More Than 20% Growth For Their Team. Personal Annual Increment A Large Percentage Of 52%, Expects 10% Or Less Than 10% Of Growth In Their Salaries This Year. Out Of This, 22% Are Not Expecting Any Growth In Salaries. Only 5% Are Optimistic, And Expect Their Salaries To Grow Over 20%. Page 12 of 17
  • 13. 2013 Salary Appraisal Survey Report Copyright SuperCFO Frequency of Salary Negotiation Almost 50% Of The Respondents Negotiate Their Salary Packages Annually. Surprisingly, 24% Never Negotiate Their Salary Packages. In Other Words, They Are Not Given An Opportunity To Discuss Their Salary Raises Every Year. About 22% Work For Companies, Where Negotiations On Compensations Are Conducted At A Frequency, Which Is Greater Than A Year. Concern About Losing Top Performers A Majority 49% Of The Employers Feel That They Do Get Somewhat Harried That They Might Lose Their Key Employees To Competition. About 23% Feel That There Is No Concern On This Front, As They Have The Ability To Hire Talent With A Quick Turnaround Time, If Such An Eventuality Arose. Page 13 of 17
  • 14. 2013 Salary Appraisal Survey Report Copyright SuperCFO Factors Influencing Your Decision To Accept Lower Salary A Majority 19% Of The Participants Felt That They Cannot Afford To Stay Unemployed For A Long Period Of Time. This Omnipresent Fear, Compels Them To Accept Jobs At Lower Salaries At Times.15% Feel That An Organization’s Culture Is A More Important Aspect Than Salary Concerns While Choosing An Optimum Vocation. People Also Feel That Factors Like Working From Home And Flexible Working Hours, Apart From The Job Location And Job Security, Company’s Prestige In The Global Market, Are Some Of The Factors They Would Take Into Account While Considering A Job Offer With A Lower Pay. Factors Driving Companies to Increase Salaries About 43% Of The Respondents Feel That A Major Motivation For Them To Increase Salaries Would Be To Retain Key Staff. Other Motivational Factors Would Be Like Alignment With The Market Trends, Inflation Adjustments, And Increase Of Salaries For Those Skilled Employees Who Are In Short Supply. Page 14 of 17
  • 15. 2013 Salary Appraisal Survey Report Copyright SuperCFO Incentive/ Perks Expectation - In Your Next Dream Job A Combined 77% Of The Respondents Feel That Performance Based Incentives And ESOPs Would Be Their Biggest Expectation As Far As Their Concept Of A Dream Job Was Concerned. 23% Would Be Happy With Generous Holiday Allowances, And Training And Professional Development Sponsorships. Ideal Fixed Variable Compensation Mix % for Senior Executives A Majority 35% Of The Respondents Feel That 80-20 Is The Ideal Fixed Variable Mix % While Designing Compensation Package For Senior Executives. They Are Followed By 22% Of The Respondents Who Believe 75-25 Is The Ideal Mix %. Page 15 of 17
  • 16. 2013 Salary Appraisal Survey Report Copyright SuperCFO About SuperCFO SuperCFO Services Private limited is a leading provider of Virtual, Interim and Full time CFO solutions with presence in India and Singapore, servicing clients globally. The company services its domestic & international clients through a network of CFO partners, based across the country. SuperCFO specializes in providing customized CFO solutions to all kinds of companies, right from a startup to a large public company. SuperCFO also works closely with several private equity funds, assisting them with their portfolio companies. Page 16 of 17
  • 17. 2013 Salary Appraisal Survey Report Copyright SuperCFO SuperCFO Services Private Ltd. Follow SuperCFO: Email: info@supercfo.com Website: www.supercfo.com http://www.bi.supercfo.com India Singapore 104, Marathon Max, 51 Goldhill Plaza, Mulund - Goregaon Link Road, #07-10/11, Singapore: 308900. Mulund (West), Mumbai: 400 080. Page 17 of 17

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